Which of the following statements about the short run and long run is true?
A) The number of firms in the industry is fixed in the short run, but in the long run the number can change.
B) Free entry and exit of firms is possible in the short run, but entry and exit of firms is restricted in the long run.
C) The short-run average cost curves lies below the long-run average cost curves.
D) A firm can vary all of its factors of production in both the short run and the long run.
A
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A physical examination is NOT a good screening device for life insurance companies if
A) life-threatening diseases are usually undetected. B) doctors cannot be easily bribed to write a good report. C) medical history is a good predictor of life expectancy. D) one's current state of health is a good predictor of life expectancy.
Which of the following statements best describes firms under monopolistic competition?
A. There is little price or quality competition. B. The firms compete, using quality, location, advertising, and price. C. Firms do not compete using advertising. D. There is only one firm so there is no competition.
At equilibrium, price ________ is equal to _________.
Fill in the blank(s) with the appropriate word(s).
Which of the following statements is TRUE?
A. consumption + saving = personal income B. consumption - investment = disposable income C. consumption + saving = disposable income D. consumption - saving = personal income